25 August 2004 -- Chinese state media has reported that China and Kazakhstan are considering construction of a multi-billion dollar natural-gas pipeline from the Central Asian nation to China's western Xinjiang autonomous region.

The "China Daily" says that, if built, the pipeline would link with China's west to east pipeline, and will pump 12 billion cubic meters of natural gas from Xinjiang to Shanghai.

The Chinese-Kazakh gas pipeline would cost billions of dollars although the exact price tag is not known.

"China Daily" says in the long term the Chinese-Kazakh pipeline may extend further west towards Uzbekistan and Turkmenistan, but that for the time being, it is in the initial stages of a feasibility study.

China and Kazakhstan earlier this year agreed to a separate $3 billion deal to build the second phase of a 3,000-kilometer oil pipeline.